Michael Saylor kicks off November with a new purchase of 397 Bitcoin (BTC) worth $45.6 million. Yet what is particularly striking is the declining pace of his investments. While Strategy previously collected BTC at a rapid pace, the appetite for new coins seems to have weakened considerably in recent weeks.
Purchasing pace continues to decline
A document published on Monday by the American stock market watchdog SEC shows that Strategy bought the 397 BTC at an average price of $114,771 each. This brings the company’s total Bitcoin inventory to 641,205 BTC, representing an investment of $47.49 billion. The average purchase price is $74,047 per coin.
It is notable that Strategy bought 390 BTC for $43.3 million the week before. This brought the total for October to just 778 BTC – the lowest monthly amount in a long time. For comparison, the company bought 3,526 BTC in September. That is more than four times as much.
Will the delay have an impact on the price?
According to CryptoQuant analysts, the slow purchasing pace is not a good sign for the Bitcoin price. This year the market has been mainly dependent on demand from institutional parties, such as Strategy and the American Bitcoin ETFs. Both have recently scaled back their purchases.
“Demand is currently mainly driven by ETFs and MicroStrategy, but they are buying less quickly. If those channels recover, momentum will return,” said Ki Young Ju, CEO of CryptoQuant.
Price gain this year is still more than 26 percent
Despite the slower pace, Strategy is still making solid gains on its positions. The company’s Bitcoin portfolio is up more than 26 percent since the beginning of this year. But with the current drop in prices and doubts about the Fed’s future interest rate policy, it remains to be seen whether those returns will hold up.
Source: https://newsbit.nl/michael-saylors-strategy-trapt-november-af-met-bitcoinaankoop-van-45-miljoen-dollar/
